“We see the company as a leveraged play on the expected
recovery of the TV advertising market, which we believe has seen
its trough in the first half of 2013,” Tomasz Krukowski, an
analyst at Deutsche Bank in Warsaw, said in a note yesterday.

The refinancing of high-yield debt last month when TVN sold
430 million euros ($583 million) of bonds due in 2020 will
“result in significant financial charges in 2013” and “should
halve interest expenses in 2014 versus 2012,” he said.

The Polish ad market is improving and has “reached a
bottom,” TVN Chief Executive Officer Markus Tellenbach said on
Aug. 22. Deutsche Bank expects the market to increase 6% in both
2014 and 2015 after declining this year and in 2012.